GOLD price reached its highest level since late January 2021. The price is entering an oversold status as the Relative Strength Index is at 71%. Why is this important? Well, this could start driving the price down in the upcoming sessions. We can see that the Bollinger Bands are very wide and we could have higher volatility in the short term.
The price trades slightly above the upper band which suggests the price is relatively high. Our parabolic SAR indicator signals that the price will continue to go up, however, this is a lagging indicator. So will we really see a rise in as soon as we think?
To further back out point, the short and long term moving averages spread is getting wider and signal an uptrend. Is it fair to believe that it's going to be hard for GOLD to continue climbing before the price finds a little pullback?
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